The manufacturer of deflection yokes Vilniaus Vingio Geba, belonging to the Lithuanian electronic company Vilniaus Vingis, is losing the orders to manufacture the products, will cease its activity from 25April. This decision was made by the only shareholder Vilniaus Vingis on Tuesday taking into account forced idle time due to not lack of orders and not existing perspective of deflection yokes production. The prices being decreasing in the market of deflection yokes through the expansion of China and India manufacturers the production becomes not competitive branch of industry. Due to that the company's orders starting gradually to reduce from the year 2005. During the previous year 3.1 million pcs of deflection yokes were sold or 47 percent less than in the year 2005. “The bankruptcy of Ekranas had the significant influence for the reducing of sales “ - Vilniaus Vingis AB General Director Ms Neringa Menčiūnienė said. These reasons made dependent on reducing of the number of workers, which reduced from 857 to 304 during the year 2006. The leaving relief amounted to 3.72 million LTL was paid for dismissed workers. Gradually the workers were dismissed during the first four months this year too. For them the relief of 0.85 million LTL was paid. Vilniaus Vingio Geba UAB is ceasing the activity, 138 workers retired from company, 1million LTL is foreseen to fix for leaving relieve. Acc. to Neringa Menčiūnienė during the past 1.5 month Vilniaus Vingio Geba UAB had only one customer - color picture tube manufacturer Samsung from Hungary, which proposed conditions will lead the company to losses. “ The orders being reduced and at the same time the production volumes, will be proposed to sell not used equipment, technological tools and other not used movable long and short terms capital. From the April 2007 the company will not get the incomes for building rent. However the money, got by building's selling, made the possibility to settle up with banks and other company's creditors” - N. Menčiūnienė said. By her, the debts for creditors reach only 200 thousand LTL. It is planning that during the first months of this year the sales of Vilniaus Vingis reach 8.5 million LTL. The profit of other activity, selling the compaay's real estate, will reach 43 million LTL. In the year 2007 is foreseen to get the profit of 17 million LTL before rating. For additional information please apply to: Neringa Menčiūnienė 370 5 239 2500
Vilniaus Vingio Geba ceases the production of not promising deflection yokes.
| Source: Vilniaus Vingis AB